- Ripple’s XRP has found strong support on approach to $0.23.
- The technical picture implies that the price may recover to $0.27.
Ripple’s XRP is the fourth-largest digital asset with the current market capitalization of $10.66 billion and an average daily trading volume of $2.28 billion. At the time of writing, XRP/USD is changing hands at $0.2370, down 1.3% in the past 24 hours, and mostly unchanged since the beginning of Wednesday.
XRP bulls ran out of luck at the end of August. At that time, the coin failed to settle above $0.32 and turned to the North. The token has lost over 17% on s month-on-month basis and touched the recent low of $0.23. The technical indicators imply that the price reached the bottom, but is it ready for a rebound? Let’s have a closer look at the charts to find out the answers.
XRP/USD: The technical picture
On the daily chart, XRP/USD is moving along the upside-looking SMA100. The price has been testing this technical barrier three days in a row, but the bearish momentum has not been strong enough to push through. Currently, the daily SMA100 sits at $0.2311, and it may serve as a starting point for an extended recovery towards the next crucial technical barrier created by the daily SMA50 at $0.27. Once it is out of the way, the upside may gain traction with the next focus on the psychological $0.30.
XRP/USD daily chart
The technical picture of the 4-hour chart supports the idea that XRP/USD might have formed a bottom on approach to $0.23. Also, the price entered a consolidation phase within the triangle pattern. At the time of writing, XRP is testing its upper boundary created by the downside trend line at $0.2380. A sustainable move above this area will confirm the bullish scenario and open up the way towards the next local resistance of $0.2550 (4-hour SMA50). This development will improve the technical picture and allow for an extended recovery towards the above-mentioned target at $0.27.
XRP/USD 4-hour chart
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On the other hand, a failure to stay above $0.23 will negate the optimistic forecast and bring $0.2150 (daily SAM200) into focus. This area may slow down the bears and allow for another recovery attempt.